AF8 Assignment 3
irosie
Member
Hi Everyone,
I'm currently writing my third assignment for AF8 and really struggling with identifying the starting position.
The question is to recommend and justify how the clients should use their holdings to produce a tax efficient and sustainable income.
However there is 4 years ish until they retire. The guidance states that the recommended income strategy may be based on a revised asset position if I have concluded this will be suitable and affordable for them. I started off by intending to come up with a completely new scenario for the start of their retirement, having moved relevant assets, used allowances etc however this is taking a significant amount of time, and will need explaining in the essay and use a decent amount of the word count, for something that isn't really relevant to what the questions is asking.
I therefore decided to just assume the assets remained the same except they are moved into appropriate underlying investments, grow at an appropriate rate and they receive employer pension contributions.
They'll also be in a future tax year when the actual income is taken! But again for simplicity I'm planning on just saying I've assumed allowances and tax rates have remained the same, although they will increase with inflation in the cash flow model.
I wondered if anyone else had completed AF8 and had a similar dilemma, and if so what route you chose to go down? I feel like I'm really overthinking it!